In his 2015 Independence Day speech, Prime Minister Narendra Modi, speaking to the Dalit community, had said that rapid industrialization was its best bet for advancement. Speaking from the ramparts of the Red Fort on 15 August this year, he tailored his message somewhat. Economic progress, he said, could not guarantee a strong India; an emphasis on social justice was needed for everyone from Dalits to tribals.

This is not surprising. Dalit anger at the flogging in Una and the demolition of Ambedkar Bhavan in Mumbai has caused discomfort for administrations at both the central and state levels. Modi’s message was par for the course in this context. But the contrast between 2015 and 2016 raises an interesting point. The Modi government has bet on Dalit empowerment via the market in the form of its Stand Up India initiative, launched earlier—a scheme for encouraging greenfield enterprises by SC/ST and female entrepreneurs by facilitating bank loans between Rs.10 lakh and Rs.1 crore, along with supplementary measures. Leaving aside the wisdom of directing banks to front up what is essentially risk capital, how does this vision of Dalit capitalism stack up in light of social stigmatization that is still widespread?

Dalit capitalism —a term coined by activist Chandra Bhan Prasad and can be defined as when capitalism( business/economic activity) is seen as a solution for the upliftment and emancipation of Dalits.

The Dalit Indian Chamber of Commerce and Industry (DCCI) was founded in 2005 along the lines of FICCI in 2005. It is an association of entrepreneurs from the Scheduled Castes and Scheduled Tribes.

Government steps to promote Dalit Capitalism

•  National Schedule Caste Finance and Development Corporation offers loans to the SC Community for Entrepreneurship development and other  activities.
•  The IFCI provides venture capital loans for the SCs upto an amount of 15 crores.
•  Start Up India Programme will provide support to entrepreneurs including credit guarantee programme for SCs.
•  MUDRA Bank will give leading priority to SC/ST for extending credit facilities.
•  DICCI SME fund ( launched in 2013) plans to shell out loans worth 500 crore in the next 10 years.
•  Green Business Scheme envisioned financial assistance to Dalits to combat climate change.

Challenges faced by Dalit Capitalism

•  The fundamental flaw in the argument for Dalit capitalism is that it merely seeks to find an equal space for Dalits within what is inherently an  exploitative system i.e. capitalism.
•  Rather than grapple with the question of a comprehensive transformation of political, economic and cultural relations towards equality in society,  Dalit capitalism ingratiates itself with the present exploitative order.
•  Problems faced by Dalit Entrepreneurs in terms of discrimination at various levels - social , economic and politico-administrative levels.
•  Dalit Capitalism still lacks in uplifting the poorest of poor Dalits because it is not organized on the issues of mass pauperization, question of land,  or the issue of landless Dalits and their forced displacement by mega-projects and rapidly widening social-economic inequalities due to mercantile  capitalism and globalization.

This is not to invalidate the potential of Dalit capitalism. But while successful entrepreneurs of the kind represented by DICCI represent that potential, they are not, unfortunately, representative of the common experience. Access to funding is important—given the NSCFDC’s dismal performance to date, it remains to be seen how effective Stand Up India will be—but it is not the only factor. The private sector has played a significant role in bolstering black capitalism in the US via targeted inclusion of black enterprises in supply networks. This will be necessary in India as well in the Dalit context. While there have been positive signs from groups like Tata and Godrej, there is little to show for it yet in a wider context. Integration in government supply chains while keeping financial concerns in mind is also a must.

Liberalization and political empowerment have changed the Dalit experience and expectations over the past quarter century. The current Dalit anger that the BJP is attempting to deal with shows this clearly. Dalit capitalism is the next step forward. But for the market to succeed, it will first have to deal with old prejudices.